Suntech's European unit granted 6 more months to restructure debt

Jun 19, 2013 - Suntech Power Holdings Co Ltd (NYSE:STP) said Tuesday that the Swiss judicial authorities had given its principal operating subsidiary in Europe six more months to restructure debt.

Suntech Power International Ltd (SPI) received a definitive moratorium on creditor claims for a six-month period, which can be prolonged after that. Most of the debt represents Suntech inter-company debt, the parent noted.

At the beginning of April, the judicial authorities in Schaffhausen granted a two-month provisional moratorium on creditor claims related to over-indebtedness to Suntech's European arm.

SPI has already reached significant milestones in the restructuring process, Suntech's CEO David King said, adding that the European division will proceed with its normal business activities during the restructuring.

Suntech also said that apart from SPI composition proceedings and the insolvency and restructuring activities at its main Chinese unit Wuxi Suntech Power, the parent company was not aware of similar proceedings relating to its other operations.

Earlier this month two of its investors initiated legal action against the Chinese company for USD 550,000 (EUR 410,300) due on senior notes plus interest, court expenses and other costs. In March, the solar cell maker failed to repay USD 541 million of notes due March 15. The company said at the time that investors holding over 60% of the notes had agreed not to take any measures until May 15.

(USD 1.0 = EUR 0.746)

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